In a bold step to transform the global financial landscape, the Digital Economy Research Initiative, led by a dynamic group of Harvard students and alumni, has officially launched the “New Bretton Woods Project” (NBW). This pioneering blockchain-based initiative has secured membership in Harvard’s prestigious Innovation Labs and is set to begin incubation there in the coming weeks. NBW aims to tackle the escalating global debt crisis by offering innovative, technology-driven solutions.
At the heart of the project is the development of a native Bitcoin stablecoin, leveraging the transformative potential of decentralized finance (DeFi). Built on the innovative BeL2 infrastructure, NBW aims to reshape global financial systems, unlocking new possibilities for debt management and financial stability across nations.
With the power of DeFi and blockchain, NBW stands poised to disrupt the status quo, offering a bold new path toward economic resilience in the face of one of the greatest challenges of our time. This initiative signals not just a step, but a leap toward a decentralized, stable and secure economic future.
The project reframes Bitcoin as not just a store of value but the foundation of a decentralized financial system. Using BeL2—Bitcoin’s second-layer solution—the NBW project enables smart contracts for Bitcoin-backed stablecoin construction, empowering users to engage in decentralized finance while preserving Bitcoin’s core principles of decentralization and security.
“Harvard Innovation Labs will help turn our vision into reality,” said Jacob, Lead Member of New Bretton Woods (NBW) at Harvard University. “Our goal is to create a ‘New Bretton Woods’ system anchored in Bitcoin, bringing stability through the utility of a stablecoin. This stablecoin allows users to bypass Bitcoin’s price volatility while retaining the potential for long-term gain, making the product practical for daily use.”
The native Bitcoin stablecoin will be fully backed by Bitcoin, enabling users to experience the stability of fiat currency without liquidating their Bitcoin holdings. This offers a balance of algorithmic security using Bitcoin miners and the opportunity for long-term growth.
The BeL2 infrastructure allows for decentralized finance applications, where Bitcoin remains securely on the main network. Bitcoin can be used as collateral for Layer 2 applications such as decentralized exchanges, loans, and stablecoin issuance. The NBW team ensures that all Bitcoin-related settlements occur on the Bitcoin main network for maximum security. Instead of transferring assets across chains, messages are sent to Ethereum-compatible networks to issue stablecoin, uniting technologies and supporting a robust decentralized economy.